OREANDA-NEWS. July 15, 2010. The State Property Fund of Ukraine announced it would hold a privatization auction for a 25.02% stake in Prykarpatoblenergo (UX: PREN UK) on August 17. The SPF had been offering stakes in Prykarpatoblenergo and two others (Poltavaoblenergo (UX: POON UK) and Sumyoblenergo) as single blocks on a weekly basis from May 2009 to March 2010, but bidders never materialized. The first Oblenergo to go back up for sale this summer was Poltavaoblenergo on July 9; the SPF offered the stake in lots and sold 8.76% of the company at that auction.

Concorde Capital: we expect this ~25% stake to be divided on 26 lots as SPF announced with the Poltavaoblenergo and Sumyoblenergo privatizations. We deem Prykarpatoblenergo as one of the most interesting in the Oblenergo universe: the company posted a 19% EBITDA margin in 2009, the highest in the sector, and is 2nd efficient in terms of commercial gains (electricity saved on its grid below allowed technical losses). We expect interest in this privatization from institutional investors to depend on the auction starting price, which is yet to be announced.